From the Estimates,calculate the Return on Equity (After Tax)if Rf

question 26

Multiple Choice

From the estimates,calculate the return on equity (after tax) if Rf = 5%,E(Rm) = 13%,franking premium = 3%,beta = 1.5 and the corporate tax rate is 30 per cent.

• A)15.05%
• B)21.5%
• C)18.8%
• D)15%

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Definitions:

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Department Representatives

Individuals chosen or assigned to speak or act on behalf of their department within an organization, often in decision-making or coordination roles.

Profit Sharing

Is a compensation strategy where employees receive a share of the company's profits, intended to motivate performance and align employee interests with business success.

Goal Incompatibility

A situation where the objectives of individuals or groups diverge, making it difficult for both parties to achieve their goals simultaneously.